Hospitality Industry in Japan - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The market is segmented by Type (Chain Hotels and Independent Hotels) and Segment (Service Apartments, Budget and Economy Hotels, Mid and Upper Mid-scale Hotels, and Luxury Hotels).

Market Snapshot

Hospitality Industry in Japan
Study Period: 2016 - 2026
Base Year: 2020
CAGR: 0.6 %

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Market Overview

The rapidly growing tourism sector in Japan has been contributing to the expansion of the hospitality industry. Japan has been recording the highest number of visitors year-on-year and the country is expanding its hospitality industry to accommodate the increasing number of visitors. With the limited available spaces for development, the country has introduced a capsule hotel concept, which accounted for around USD 132 million in 2018. Domestic tourism is on the rise in Japan, and to cop up with that, many domestic brands are expanding their footprint across the country. Tokyo, which is among the major cities in the country, has been registering a growing number of inbound tourists, with around 14.12 million in 2018, which was almost double to the number it welcomed in 2013. Oska and Chiba have also been witnessing rising numbers of arrivals year-on-year. The country has been recording the highest occupancy rate every year at around 80%. Though the tourism statistics look promising, the limited geographically available space for new developments is going to be a limitation for the hospitality industry in Japan.

Scope of the Report

A complete background analysis of the hospitality industry in Japan, which includes an assessment of the industry associations, overall economy, and emerging market trends by segments, significant changes in the market dynamics, and market overview.

By Type
Chain Hotels
Independent Hotels
By Segment
Service Apartments
Budget and Economy Hotels
Mid and Upper Mid-scale Hotels
Luxury Hotels

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Key Market Trends

Rising Number of Tourists have Driven the Market

According to the Japan National Tourism Organization, in just four years, the country registered double the number of visitors it welcomed in 2014, which was 13.41 million. In 2018, it welcomed 31.19 million tourists and is aiming to host 60 million visitors by 2030. Visitors from China constituted the highest share of foreigners that visited Japan, followed by South Korea and Taiwan.

japan arrivals.png

Mid and Upper Mid-scale Segment Hotels are Dominating the Market

Japan has more than 2,600 hotel establishments that are distributed across the country, of which, the luxury hotels segment constitutes around 50 hotels only. Whereas the budget and economy hotels segment covers around 110 hotels and became the second-largest segment of Japan’s hospitality industry. The country has around 2,240 hotels in the mid and upper mid-scale segment. The dominant domestic tourism, the quality services offered by majority hotels of the mid and upper mid-scale segment, and effective utilization of the available space have become the major reasons for the rapid growth of this segment.

japan by segment.png

Competitive Landscape

The hospitality industry in Japan is largely dominated by homegrown hotel companies. The domestic brands and their chains constitute around 90% of the total market share. Tokyo Inn Co. is the largest hotel chain in the country, in terms of rooms/keys supply. It has more than 250 hotel properties and offers around 50,000 rooms/keys across the country. Route-Inn Hotel has more than 275 hotel establishments and offers around 14,500 rooms/keys across Japan. Marriott International is the largest international brand in terms of room supply, with around 40 establishments, and offers around 12,000 room/keys.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Impact of COVID-19 on the Hospitality Industry

    4. 4.4 Insights into Revenue Flows from Accommodation and Food and Beverage Sectors

    5. 4.5 Leading Cities in Japan with Respect to Number of Visitors

    6. 4.6 Investments (Real Estate, FDI, and Others) in the Hospitality Industry

    7. 4.7 Technological Innovations in the Hospitality Industry

    8. 4.8 Insights into Impact of Shared Living Spaces on the Hospitality Industry

    9. 4.9 Insights into Other Economic Contributors to the Hospitality Industry

    10. 4.10 Value Chain Analysis

    11. 4.11 Porter's Five Forces Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Chain Hotels

      2. 5.1.2 Independent Hotels

    2. 5.2 By Segment

      1. 5.2.1 Service Apartments

      2. 5.2.2 Budget and Economy Hotels

      3. 5.2.3 Mid and Upper Mid-scale Hotels

      4. 5.2.4 Luxury Hotels

  6. 6. COMPETITVE INTELLIGENCE

    1. 6.1 Market Concentration

    2. 6.2 Company Profiles

      1. 6.2.1 Toyoko Inn Co. Ltd

      2. 6.2.2 Route-Inn Hotels

      3. 6.2.3 APA Hotels & Resorts

      4. 6.2.4 Prince Hotels & Resorts

      5. 6.2.5 Super Hotel Co. Ltd

      6. 6.2.6 Okura Nikko Hotels

      7. 6.2.7 Marriott International

      8. 6.2.8 Tokyu Hotels

      9. 6.2.9 JR Hotel Group

      10. 6.2.10 Hotel Mystays

    3. *List Not Exhaustive
    4. 6.3 Loyalty Programs Offered by Major Hotel Brands

  7. 7. INVESTMENT ANALYSIS

  8. 8. FUTURE OF THE SECTOR

  9. 9. APPENDIX

**Subject to Availability

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Frequently Asked Questions

The Hospitality Industry in Japan market is studied from 2016 - 2026.

The Hospitality Industry in Japan is growing at a CAGR of 0.6% over the next 5 years.

Toyoko Inn Co Ltd , Route-Inn Hotels , APA Hotels & Resorts , Prince Hotels & Resorts , Super Hotel Co Ltd are the major companies operating in Hospitality Industry in Japan.

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